As part of the ongoing effort to expand service sector coverage in the Producer Price Index (PPI), the Bureau of
Labor Statistics (BLS) introduced new price indexes for Commercial Machinery Repair and MaintenanceNorth American
Industry Classification System (NAICS) 811310 in July 2007. Data for this industry, which date back to June 2006,
will appear in table 5 of the PPI Detailed Report and are
available online
through the BLS Web site.

NAICS 811310 includes three distinct services: (1) repair and maintenance of industrial machines and equipment, (2)
rewinding armature and repairing electric motors (except on a factory basis), and (3) repair and maintenance of
commercial refrigeration equipment.

Industrial machine and equipment repair establishments perform repair and maintenance on many different kinds of
machinery, such as agricultural equipment, material handlers, construction and mining equipment, machine tools, and
factory machinery. In addition, all non-construction welding is included here.

Armature rewinding and repair shops are involved in the service of armatures, stators, electrical generators and
electrical transmission equipment.

Commercial refrigeration equipment repair establishments are involved with the repair and maintenance of refrigeration
equipment. Equipment serviced includes refrigerated display cases, walk-in refrigerators and freezers, and ice machinesbut
excludes centralized air-conditioning equipment. However, the repair and maintenance of refrigeration units used in
containerized shipping (commonly called reefer units within the transportation sector) are included in this
industry.

Each repair service in this industry is a custom service. Most repair transactions are measured and tracked in the
PPI with model-based prices. For each respondent, specific contracts are selected during the initiation period. These
contracts describe the repair service being provided, the contract price, and may specify any or all of the following:
labor rates, the amount of labor and labor type, any necessary replacement parts, and other inputs needed to perform
the repair.

In subsequent months, for each specific service selected, the respondent estimates the current price for providing
the service described in the contract, including updating the hourly rate for each labor type and the estimated charge
for the replacement parts. If the number of hours required for providing the service changes, the number of hours in
the model will be updated and the resulting difference is shown as a price change.

Inspecting and testing commercial and industrial machinery and equipmenteither in conjunction with repair or maintenance
services, or performed alonealso are part of this industry. Inspection and testing include detailed examination and
evaluation of the machinery or equipment, and usually is scheduled according to the manufacturer specifications. The
fees received for these services are captured as the price.